All Forum Posts by: Leon D.

I'm afraid I must agree with Curt Davis . If it isn't a typo that you gross $16,200/year, I can't imagine that any lender would qualify you for a mortgage, whether for a private residence or investment property. You'll have property taxes, utilities, landscaping, and incidentals (even the cheapest hot water heater is $300, and what about any other appliance that breaks?). Income at that level doesn't give you any room to breath, just about ANYTHING could figuratively run you over (doctor bill).

I'd suggest just using "MFR" and skirting the issue entirely.

Andrew S. You're overthinking things. And LOI is non-binding, and in most states is merely an agreement to enter into good-faith negotiations for a property. The offer price is an LOI is what you're willing to pay based in what you know at the time you submit it. After DD, you may or may not adjust that price based on what you find. If agreed by the seller, that becomes the contract price. Without an LOI, it's no different that a contract on a personal home. You make an offer, they accept, you escrow earnest money, then you have an inspection period to review the financials and the physical property. If the price needs adjustment, adjust it. The seller agrees, you "go hard" (lose the earnest money out you back out), and eventually close. In short, with or without an LOI, the contract should always have a DD period with a way out for you if things aren't as presented or you discover a insurmountable problem.

Dan S. Necessary? No. Recommended? Yeah, you bet.

Congrats! Another person I can grab lunch with away from the Loop.

Jamal Atwell Haven't dug into your numbers, but I see a mistake right away. You pay 6% when you sell (though you should be able to get that down to 5%), you pay nothing out of pocket to your agent when you buy. The *seller's* agent splits the commission with the buyer's. Yes, you do pay for it in a way (higher sales price than had it been FSBO), but it's not out of pocket the way some closing costs might be. And don't forget about those: transfer stamps, attorney, title, property tax escrows, etc.

Jaclyn Bays This gets asked (and answered) every few weeks, so it's possible that you didn't get a reply as a result of answer burnout. Here's a thread from last month: https://www.biggerpockets.com/forums/48/topics/128614

I'm a full-time investor, but never done wholesaling, only fix/flip and land lording. The only wholesaler I've come across to make a real living wholesaling was a guy profiled a few years ago in the NY Times who bought dozens a day over the phone from banks that called him directly. I'm sure others are out there, but I've never met them.

What Bill Gulley said.

I'd consider those hours more than reasonable. I would have even bumped Sunday back to noon, maybe even 11am.